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American Defense Systems, Inc.: ADSI Expects Increased Crew Protection Kit Orders From JCB Totaling More Than $10 Million Thru

^{Published on 2008-12-08 08:37:54 - Market Wire}
 

HICKSVILLE, NY--(Marketwire - December 8, 2008) - American Defense Systems, Inc. (ADSI) (AMEX: [ EAG ]), a leading provider of advanced transparent and opaque armor, architectural hardening and security products for Defense and Homeland Security, reported an expected increase in armored Crew Protection Kit (CPK) orders from JCB Construction Equipment, the world's largest privately-owned producer of construction machinery, in fulfillment of a major U.S. Army contract announced by JCB.

The ADSI CPKs would be installed on JCB's High Mobility Engineer Excavator (HMEE), which JCB describes as a "revolutionary" combat-ready engineering vehicle, with bucket and backhoe capabilities that can achieve road speeds exceeding 60 mph, or more than twice the maximum speed of a conventional backhoe. The HMEE is part of JCB's high-speed, high mobility, and logistically compatible family of military vehicles deployed around the world to serve the needs of the U.S. and British military.

JCB has announced plans to produce approximately 800 HMEEs from its manufacturing facility near Savannah, Georgia, under a $230 million procurement contract with the U.S. Army. Under ADSI's existing contract with JCB, CPK pricing has been determined based on initial quantities of 200 and 400 CPK units. ADSI forecasts CPK orders for these HMEEs to generate more than $10 million over the course of about two years, beginning in early 2009, when ADSI expects to see the first orders from JCB for their planned production of these 800 HMEEs.

This CPK supply arrangement would be a continuation of the ongoing development and supply agreement between JCB and ADSI announced in March 2007 to provide armor for HMEEs made to the specification of the U.S. Army Tank-Automotive and Armaments Command (TACOM). To date, ADSI has shipped more than $3.5 million in CPK orders to JCB under this agreement. Separately, in August 2008, JCB awarded ADSI a $540,000 contract to produce CPKs for HMEEs purchased by the United Kingdom Ministry of Defense.

According to JCB, their ADSI up-armored HMEE surpassed all expectations in the ROPS (Roll-over Protection) and FOPS (Falling Object Protection) testing program administered by the U.S. Military, and is considered unrivaled by any vehicle in its class.

Fergal I. Foley, chief operating officer for ADSI, commented, "Our partnership with a world-leader like JCB gives ADSI the visibility and recognition we see as reserved for the most professional and capable of organizations. We are very proud of this association, and particularly our selection by JCB to provide our state-of-the-art armor products that keep our allied war fighters safe."

About JCB

Founded in 1945, JCB is the largest privately-owned producer of construction machinery in the world. With more than 9,000 employees, it is also the world's third largest of all heavy equipment manufacturers. JBC operates 18 manufacturing plants across four continents: 11 in the U.K., three in India and others in the U.S., China, Germany and Brazil. These plants produce more than 300 distinct machines, including backhoe loaders, Loadall telescopic handlers, tracked and wheeled excavators, wheeled loading shovels, articulated dump trucks, rough terrain fork lifts, mini excavators, skid steers loaders, JCB Vibromax compaction equipment and ground-care equipment.

Over the past 23 years, JBC has produced military construction machines for the armed forces of 45 nations around the globe. Chris Saucedo, a Marine Corps veteran, serves as the general manager of JCB's Military Products Division for North America and has hired many former military members whose first-hand experience lends urgency to their assembly tasks and ensures their products meet stringent quality standards while increasing the Army's strategic and tactical capabilities on the battlefield.

JCB has won more than 50 major awards for engineering excellence, exports, design, marketing, management and for its care for the environment. Among them are 23 Queen's Awards for Technology and Export Achievement. For more information about JCB, go to [ www.jcbamericas.com ]

About American Defense Systems, Inc.

American Defense Systems, Inc. offers advanced solutions in the design, fabrication, and installation of transparent and opaque armor, security doors, windows and curtain wall systems for use by military, law enforcement, homeland defense and corporate customers. ADSI engineers also specialize in developing innovative, functional and aesthetically pleasing security applications for the mobile and fixed infrastructure physical security industry. For more information, visit the ADSI corporate Web site at [ www.adsiarmor.com ].

Some of the statements made by American Defense Systems, Inc. ("ADSI") in this press release, including, without limitation, statements regarding ADSI's anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements shall be covered by the safe harbor provisions for such statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "forecasts," "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "potential," "continues" and similar expressions are forward-looking statements. ADSI cautions you that forward-looking statements are not guarantees of performance. ADSI undertakes no obligation and disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve known and unknown risks and uncertainties that may cause ADSI's actual future results to differ materially from those projected or contemplated in the forward-looking statements. ADSI believes that these risks include, but are not limited to: ADSI's reliance on the U.S. government for a substantial amount of its sales and growth; decreases in U.S. government defense spending; ADSI's ability to contract further with the U.S. Department of Defense; ADSI's ability to comply with complex procurement laws and regulations; competition and other risks associated with the U.S. government bidding process; changes in the U.S. government's procurement practices; ADSI's ability to obtain and maintain required security clearances; ADSI's ability to realize the full amount of revenues reflected in its backlog; ADSI's reliance on certain suppliers; and intense competition and other risks associated with the defense industry in general and the security-related defense sector in particular.

Further, JCB has not placed any orders to date with ADSI relating to the aforementioned planned production of 800 HMEEs for the U.S. Army, and JCB is not obligated to place such orders. There can be no assurance that ADSI will obtain a sufficient number of orders under the JCB contract, if any at all, to generate more than $10 million in revenue or that such orders will be placed during the two year period referenced in this press release. Accordingly, ADSI revenues in connection with the matters referenced herein could be significantly less than the $10 million and may not be realized during such two year period.

Additional information concerning these and other important risk factors can be found under the heading "Risk Factors" in ADSI's filings with the Securities and Exchange Commission, including, without limitation, its most recent registration statement on Form 10. Statements in this press release should be evaluated in light of these important factors.